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Terex (TEX) Q3 Earnings and Revenues Fall Short Of Estimates
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Terex Corporation (TEX - Free Report) reported adjusted earnings per share of 82 cents in third-quarter 2019, missing the Zacks Consensus Estimate of 83 cents by 1%.The bottom line declined 24% from the prior-year quarter.
Including one-time items, the company reported earnings of 73 cents per share in the quarter compared with the year-ago figure of 92 cents per share. Operational Update
Revenues in the quarter declined 6.8% year over year to $1.025 billion. Moreover, the company’s revenues missed the Zacks Consensus Estimate of $1.105 billion. Cost of goods sold declined 5% to $815 million from $858.7 million in the prior-year quarter. Gross profit fell 12.7% year over year to $209.6 million.
Selling, general and administrative expenses declined 9.3% to $123.2 million from $135.9 million in the prior-year quarter. Terex reported operating income of $86.4 million compared with $104.2 million in the year-ago quarter, reflecting a year-over-year decline of 17%.
Terex Corporation Price, Consensus and EPS Surprise
The Aerial Work Platforms (AWP) segment reported revenues of $628.2 million in the third quarter, down 13.9% from $729.4 million in the prior-year quarter due to a decline in demand in its major market. Operating income declined 43.8% to $45.9 million from the prior-year quarter.
The Material Processing (MP) segment’s revenues totaled $338.6 million, reflecting a year-over-year improvement of around 8%. The segment reported operating income of $52.4 million, up 26.6% year over year.
Financial Position
Terex had cash and cash equivalents of $470.6 million at the end of the third quarter of 2019 compared with $339.5 million at 2018 end. In the nine months ended Sep 30, 2019, the company generated $78.4 million of cash from operating activities against cash outflow of $19.6 million in the prior-year comparable period. Long-term debt was $1,166.6 million as of Sep 30, 2019, compared with $1,210.6 million as of Dec 31, 2018.
2019 Guidance
Terex now projects earnings per share of $3.00-$3.20 for fiscal 2019 on net sales of approximately $4.4 billion. It had earlier expected earnings per share of $3.40-$3.80 and net sales of $4.6 billion. Further, the company adjusted its yearly free cash flow guidance to roughly $110 million.
Considering the overall slowdown in the industrial equipment demand, the company anticipates sales to be down 10% year over year in 2020.
Share Price Performance
Terex stock has declined 8.2% over the past year against the industry’s growth of 12.5%.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Industrial Products sector are Sharps Compliance Corp , Plug Power Inc. (PLUG - Free Report) and Cintas Corporation (CTAS - Free Report) . While Sharps Compliance sports a Zacks Rank #1 (Strong Buy), Plug Power and Cintas carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sharps Compliance has an expected earnings growth rate of a whopping 500% for the ongoing year. The company has appreciated 39.1% so far this year.
Plug Power has a projected earnings growth rate of 2.8% for the current year. The stock has gained 124.2% so far this year.
Cintas has an estimated earnings growth rate of 12.74% for 2019. Shares of the company have rallied 60% year to date.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>
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Terex (TEX) Q3 Earnings and Revenues Fall Short Of Estimates
Terex Corporation (TEX - Free Report) reported adjusted earnings per share of 82 cents in third-quarter 2019, missing the Zacks Consensus Estimate of 83 cents by 1%.The bottom line declined 24% from the prior-year quarter.
Including one-time items, the company reported earnings of 73 cents per share in the quarter compared with the year-ago figure of 92 cents per share.
Operational Update
Revenues in the quarter declined 6.8% year over year to $1.025 billion. Moreover, the company’s revenues missed the Zacks Consensus Estimate of $1.105 billion. Cost of goods sold declined 5% to $815 million from $858.7 million in the prior-year quarter. Gross profit fell 12.7% year over year to $209.6 million.
Selling, general and administrative expenses declined 9.3% to $123.2 million from $135.9 million in the prior-year quarter. Terex reported operating income of $86.4 million compared with $104.2 million in the year-ago quarter, reflecting a year-over-year decline of 17%.
Terex Corporation Price, Consensus and EPS Surprise
Terex Corporation price-consensus-eps-surprise-chart | Terex Corporation Quote
Segmental Performance
The Aerial Work Platforms (AWP) segment reported revenues of $628.2 million in the third quarter, down 13.9% from $729.4 million in the prior-year quarter due to a decline in demand in its major market. Operating income declined 43.8% to $45.9 million from the prior-year quarter.
The Material Processing (MP) segment’s revenues totaled $338.6 million, reflecting a year-over-year improvement of around 8%. The segment reported operating income of $52.4 million, up 26.6% year over year.
Financial Position
Terex had cash and cash equivalents of $470.6 million at the end of the third quarter of 2019 compared with $339.5 million at 2018 end. In the nine months ended Sep 30, 2019, the company generated $78.4 million of cash from operating activities against cash outflow of $19.6 million in the prior-year comparable period. Long-term debt was $1,166.6 million as of Sep 30, 2019, compared with $1,210.6 million as of Dec 31, 2018.
2019 Guidance
Terex now projects earnings per share of $3.00-$3.20 for fiscal 2019 on net sales of approximately $4.4 billion. It had earlier expected earnings per share of $3.40-$3.80 and net sales of $4.6 billion. Further, the company adjusted its yearly free cash flow guidance to roughly $110 million.
Considering the overall slowdown in the industrial equipment demand, the company anticipates sales to be down 10% year over year in 2020.
Share Price Performance
Terex stock has declined 8.2% over the past year against the industry’s growth of 12.5%.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Industrial Products sector are Sharps Compliance Corp , Plug Power Inc. (PLUG - Free Report) and Cintas Corporation (CTAS - Free Report) . While Sharps Compliance sports a Zacks Rank #1 (Strong Buy), Plug Power and Cintas carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sharps Compliance has an expected earnings growth rate of a whopping 500% for the ongoing year. The company has appreciated 39.1% so far this year.
Plug Power has a projected earnings growth rate of 2.8% for the current year. The stock has gained 124.2% so far this year.
Cintas has an estimated earnings growth rate of 12.74% for 2019. Shares of the company have rallied 60% year to date.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>